NEW YORK, April
26 – US
Comptroller of
the Currency
Joseph Otting,
who generated
fake comments
supporting his
OneWest Bank's
merger with
CIT Group, has
now been shown
to have
continued buy
and owning
bank and
insurance
company stocks
even after he
was nominated,
confirmed and
began at the
OCC. The
stocks
included Wells
Fargo, Goldman
Sachs, Morgan
Stanley,
Citigroup,
KeyCorp and
Prudential
Financial. Now
Otting has his
eye on further
weakening
Community
Reinvestment
Act reviews of
mergers. The
OCC is still
withholding
documents
requested by
Inner City
Press and CRC
under FOIA
including
about how
Otting's
bank's lawyers
responded to
the fake
comment issue.
We'll have
more on this.
Even as
Consumer
Financial
Protection
Bureau chief
Mick Mulvaney
promises to
scrap payday
lending and
other
protections,
on April 20
his CFPB with
a new logo
along with
Joseph
Otting's OCC
announced a $1
billion fine
against Wells
Fargo. As one
Inner City
Press agency
source put it,
imagine what
the fine would
be under
anyone else.
Others noted
how unspecific
the press
release of the
CFPB -
apparently
being renamed
the Bureau of
Consumer
Financial
Protection -
is, compared
to those which
came before.
On April 9 the
payday
lenders'
lobbying group
Community
Financial
Services
Association of
America sued
to overturn
the rule, in
the U.S.
District Court
for the
Western
District of
Texas, Austin
Division. This
comes as the
US Office of
the
Comptroller of
the Currency's
Joseph Otting
has ended the
ban on payday
lender ACE
Cash Express
working with
national
banks, and
with Mulvaney
set to testify
to the House
Financial
Services
Committee on
April 11, amid
#JustEconomy
outreach on
Capitol Hill.
Watch this
site. Speaking
of paydays,
that of Janet
Yellen in
NYC's Tribeca
last week, a
big bucks
speech to 40
Jeffries
clients as a
sort of
appetizer to
the NCAA March
Madness
basketball
final, shows
how corrupt US
bank
regulation is.
While lower
level bank
regulators at
the Office of
the
Comptroller of
the Currency
face a cooling
off period
before they
can go through
the revolving
door, the very
Chair of the
Federal
Reserve can
sell out in
two months, or
as little as a
week as Alan
Greenspan did
it. This
should have
been
prohibited in
Dodd Frank but
wasn't. But
Yellen? For
shame -
including to
refusing to
each disclose
how much money
she charged.
We'll have
more on this.
After much
focus on who
at the Federal
Reserve Bank
of New York
should replace
outgoing
William
Dudley, on
April 3 the
Fed did the
expected,
picking
insider John
Williams from
the San
Fransisco Fed
who oversaw
Wells Fargo's
many frauds.
We'll have
more on this.
This comes
days after
Dudley himself
on March 30
misrepresented
the bill
S.2155 as
offering
relief to
"small banks"
-- actually,
it's banks up
to $250
billion in
assets, and
foreign
mega-banks
larger than
that. Dudley's
misleading
comment came
on the New
York public
radio show of
Brian Lehrer,
who
erroneously
said that the
bill has been
enacted "by
Congress" when
it has only
passed the
Senate.
Meanwhile
everyone from
Mayor Bill de
Blasio to
Senator
Kirsten
Gillibrand has
been saying
the Fed's
process for
naming the
President of
its Reserve
Bank is not
transparent
enough. Now
that the
expected
Williams has
been picked,
what next?
We'll have
more on this.
Collusion
between payday
lenders and
national banks
has been
invited by US
Comptroller of
the Currency
Joseph Otting,
under whose
watch OneWest
Bank generated
fake public
comments
urging
approval of
its merger
with CIT.
Otting has
lifted the
2002 consent
order
prohibiting
ACE Cash
Express from
"partnering"
with national
banks.
Speaking
earlier in,
where else,
Las Vegas
Otting said,
"We think
there’s a big
market there
that’s
underserved,
that really
has the
ability to be
served by
capital going
forward." When
he was selling
off OneWest,
those whose
e-mail
addresses and
identities
were stolen in
order to
promote the
merger were
thanked by
David Finnegan
of the OCC
Otting now
runs. Finnegan
then asked
OneWest's and
Otting's
lawyer Stephen
M. Salley at
Sullivan &
Cromwell to
explain. We'll
have more on
this - there's
a lot of
explaining to
do. On
March 14 as
what was
presented as a
community bank
regulatory
relief bill
was passed in
the U.S.
Senate 67-31
as S.2155,
along with
undercutting
fair lending
enforcement
the bill would
provide
particular
benefit to the
US
subsidiaries
of some of the
largest global
banks. These
include at
least one
which helped
evade North
Korea
sanctions:
Bank of Tokyo
- Mitsubishi.
But on the
evening of
March 14, this
from the White
House:
"President
Donald J.
Trump commends
the Senate,
led by
Chairman Mike
Crapo (R-ID)
for passing
S.2155, the
Economic
Growth,
Regulatory
Relief, and
Consumer
Protection
Act. The
President
supports this
bill, and as
recently noted
in a
Statement
of
Administration
Policy (SAP),
he would sign
it into law.
The bill
provides
much-needed
relief from
the Dodd-Frank
Act for
thousands of
community
banks and
credit unions
and will spur
lending and
economic
growth without
creating risks
to the
financial
system. By
tailoring
regulation,
the bill seeks
to prevent
excessive
regulation
from
undermining
the viability
of local and
regional banks
and their
ability to
serve their
communities.
The President
looks forward
to discussing
any further
revisions the
House is
interested in
making, with
the goal of
bipartisan,
pro-growth
Dodd-Frank
relief
reaching his
desk as soon
as possible."
Relief for
foreign banks
violating
North Korea
sanctions?
These are
banks with
over $250
billion in
assets which,
by using
"intermediary
holding
companies,"
would be
evading
regulation: Barclays,
BBVA, Credit
Suisse, RBC,
Deutsche Bank,
UBS,
Santander, BNP
Paribas and,
notably, MUFG
a/k/a Bank of
Tokyo
Mitsubishi.
This last, as
Inner City
Press has reported
on, already
switched
regulator to
escape an
including into
non-enforcement
of North Korea
sanctions, in
a process that
included no
public comment
period at all.
The
OCC gave its approval in a week
even while belatedly listing Bank
of Tokyo - Mitsubishi's filings
under "THESE APPLICATIONS APPEARED
INCORRECTLY IN A PRIOR WEEKLY
BULLETIN." Photohere;
link to Bulletinhere.
The public, as is the trend under
the OCC, was cut out.Something
to keep in
mind as S.2155
is portrayed
as all about
community
banks. While
Inner City
Press has been
most focused
on the
proposed
changes to the
Home Mortgage
Disclosure Act
rules (NCRC
op-ed here),
the august New
York Times
appears to
have lifted
from the
detailed earlier
reporting of
The Intercept.
This happens
at the United
Nations all
the time, with
the added
twist of the
corporate
thieves them
working with
the UN to
evict and
restrict the
Press with the
scoops. But
it's
particularly
ironic hear,
when predatory
lending is the
underlying
topic. So
we'll run
these quotes
to explicitly
credit
The Intercept:
"The bill
raises that
threshold to
$100 billion
immediately,
and to $250
billion within
18 months.
That would
relieve 25 of
the 38 largest
U.S. banks
from enhanced
regulations,
including
Citizens Bank
(Philadelphia
Phillies),
Comerica
(Detroit
Tigers),
M&T Bank
(Baltimore
Ravens),
SunTrust
(Atlanta
Braves),
KeyBank
(Buffalo
Sabres),
BB&T (Wake
Forest
University),
Regions Bank
(AA baseball’s
Birmingham
Barons), and
Zions Bank
(Salt Lake
City’s Real
Monarchs of
Major League
Soccer)....
The bill
raises that
threshold to
$100 billion
immediately,
and to $250
billion within
18 months.
That would
relieve 25 of
the 38 largest
U.S. banks
from enhanced
regulations,
including
Citizens Bank
(Philadelphia
Phillies),
Comerica
(Detroit
Tigers),
M&T Bank
(Baltimore
Ravens),
SunTrust
(Atlanta
Braves),
KeyBank
(Buffalo
Sabres),
BB&T (Wake
Forest
University),
Regions Bank
(AA baseball’s
Birmingham
Barons), and
Zions Bank
(Salt Lake
City’s Real
Monarchs of
Major League
Soccer)...
Raising the
threshold for
stadium banks
will likely
also affect
the U.S.
operations of
globally
systemic
foreign banks,
companies like
Barclays
(Brooklyn
Nets), Bank of
Montreal
(Toronto FC of
Major League
Soccer), BBVA
Compass
(Houston
Dynamo, MLS),
Santander
(minor-league
baseball’s
York
Revolution),
and Deutsche
Bank (an
equestrian
stadium in
Aachen,
Germany)." The
bill is
S.2155, the
"Economic
Growth,
Regulatory
Relief, and
Consumer
Protection
Act."
Meanwhile, the
bank with the
worst record
in the United
States for
gouging
consumers with
overdraft
fees, Ameris,
has applied to
the Federal
Reserve to buy
Atlantic Coast
Bank in
Florida, and
thereafter
Hamilton State
Bancshares. On
January 29,
Fair Finance
Watch filed
formal
opposition to
both with the
Federal
Reserve,
citing the
gouging,
Ameris'
disparate
mortgage
lending record
in Atlanta,
Georgia and
Florida, and
the Community
Reinvestment
Act. See
below. It
turns out,
from Ameris'
response, that
its
application
was false when
it said it
would continue
the CRA
policies of
Atlantic - see
full response
on Patreon, here, question 3.
Inner City
Press has
requested
records under
the Freedom of
Information
Act. Now the
Federal
Reserve has
asked Ameris a
series of
question, full
copy here
on Patreon:
"In connection
with the
application
under section
3 of the Bank
Holding
Company Act on
behalf of
Ameris Bancorp
(“Ameris”),
Moultrie,
Georgia, to
merge with
Atlantic Coast
Financial
Corporation
(“ACFC”), and
thereby
indirectly
acquire
Atlantic Coast
Bank, both of
Jacksonville,
Florida, the
following
additional
information is
requested.
Supporting
documentation
should be
provided as
appropriate.
1. Describe
any due
diligence
performed by
Ameris or
related to the
Community
Reinvestment
Act (“CRA”),
including any
efforts to
ascertain the
needs of the
communities
served by
Atlantic Coast
Bank. To the
extent the
needs of the
communities
to be served
were
identified,
summarize how
Ameris
contemplates
assisting in
addressing
those needs.
2. Indicate
any of
products or
services of
Atlantic Coast
Bank that
Ameris
contemplates
discontinuing
in connection
with the
proposal. To
the extent
that any
products or
services would
be offered in
replacement of
any products
or services to
be
discontinued,
indicate what
these are and
how they would
assist in
meeting the
convenience
and needs
of the
communities
affected by
the
transaction.
3. In the
application
(page 10),
Ameris
indicates that
Ameris Bank
plans to
continue to
implement the
current CRA
policies of
Atlantic Coast
Bank following
consummation.
Elaborate on
that
statement,
including to
what extent,
if at all, the
CRA policies
of
Ameris Bank
would be
implemented at
the combined
institution.
4. Indicate to
what extent
Ameris Bank’s
consumer
compliance
program,
including its
fair lending
program, would
be implemented
at the
combined
institution.
5. Relative to
the branches
of Atlantic
Coast Bank
that Ameris
currently
intends to
close
upon
consummation
of the bank
merger, which
are listed on
page 6 of the
Bank Merger
application,
as well as the
“Julington
Creek Branch”
and
“Jacksonville
Branch” of
Ameris Bank
that Ameris
currently
intends to
close upon
consummation,
please specify
which are
consolidations/relocations
and closures
in accordance
with the
guidance
provided in
the revised
joint policy
statement by
the banking
agencies
regarding
branch
closings. 1 In
addition,
specify the
branches which
are located in
LMI or
minority
census
tracts, and,
for the
contemplated
closures in
LMI or
minority
tracts,
indicate
efforts
contemplated
to mitigate
the potential
impact of
these
closures. 6.
Describe any
litigation or
investigations
by local,
state, or
federal
authorities
involving
Ameris or any
of its
subsidiaries
or ACFC or any
of its
subsidiaries
that is
currently
pending or was
resolved
within the
last two
years. 7.
Based on
staff’s review
of the
Agreement and
Plan of Merger
dated
November 16, 2017,
between Ameris
and ACFC (the
“Agreement”),
section 4.9 of
the
Agreement
(regarding the
making of any
loans in
excess of
$1,000,000)
raises
concerns
that Ameris
may be able to
exercise
control over
the day-to-
day operations
of ACFC and
Atlantic Coast
Bank prior to
the Federal
Reserve’s
approval of
the
application.
Discuss
in detail the
reasons ACFC
and Atlantic
Coast Bank are
required to
give prior
notice to
Ameris for the
actions
described in
section 4.9.
Explain
whether this
provision
would
give Ameris
the ability to
control the
activities
that ACFC and
Atlantic Coast
Bank
conduct in the
ordinary
course of
business.
Discuss the
reason for
choosing the
specific
dollar amounts
requiring
prior notice
to Ameris and
provide the
number and
percentage
of
transactions
within the
last year that
would have
required prior
approval under
the
stated
conditions. 8.
Provide the
Disclosure
Schedule
referenced in
the Agreement.
9. Clarify
whether
section 5.3 of
the Agreement
would require
ACFC or
Atlantic Coast
Bank to
disclose
confidential
supervisory
information or
other
information
the disclosure
of which is
prohibited by
applicable
statute or
regulation. If
section 5.3 of
the Agreement
would require
the disclosure
of such
information,
provide a
commitment
signed by
Ameris stating
that Ameris
will not seek
to enforce
section 5.3 of
the Agreement
with
respect to any
confidential
supervisory
information,
and provide a
copy of such
commitment to
ACFC. 10.
Provide
updated
financials for
the period
ending
December 31,
2017. In your
response,
please include
pro forma
capital and
asset quality
ratios, as
well as pro
forma
estimates for
exposure to
commercial
real estate
lending for
the combined
firm.
Please provide
your response
within eight
business
days." We'll
have more on
this. From
Fair Finance
Watch's (and
Inner City
Press') filing
with the Fed:
"This is a
timely first
comment
opposing and
requesting an
extension of
the FRB's
public comment
period on the
Application by
Ameris Bancorp
to merge with
Atlantic Coast
Financial
Corporation,
and thereby
directly
acquire shares
of Atlantic
Coast Bank in
Jacksonville,
Florida. Fair
Finance Watch
has reviewed
Ameris'
lending in
2016, the most
recent year
for which Home
Mortgage
Disclosure Act
(HMDA) data is
available, in
both the
Atlanta and
the
Jacksonville
Metropolitan
Statistical
Areas (MSAs)
and finds both
to be
disparate. In
the Atlanta
MSA in 2016
for refinance
loans, Ameris
denied the
applications
of African
Americans 3.75
times more
frequently
than those of
whites. Ameris
made 152 such
loans to
whites, only
16 to African
Americans and
only eight to
Latinos. In
the Atlanta
MSA in 2016
for home
purchase
loans, Ameris
denied the
applications
of African
Americans 2.11
times more
frequently
than those of
whites. Ameris
made 582 such
loans to
whites, only
206 to African
Americans and
only 48to
Latinos. In
the
Jacksonville
MSA in 2016
for home
purchase
loans, Ameris
denied the
applications
of African
Americans 2.69
times more
frequently
than those of
whites. Ameris
made 203 such
loans to
whites and
only SEVEN to
African
Americans. In
the
Jacksonville
MSA in 2016
for home
improvements
loans, Ameris
made five such
loans to
whites and
none to
African
Americans or
Latinos. In
the
Jacksonville
MSA in 2016
for refinance
loans, Ameris
denied the
applications
of African
Americans 2.2
times more
frequently
than those of
whites. Ameris
made 100 such
loans to
whites and
only FOUR to
African
Americans.
This is
disparate.
Fair Finance
Watch also
reviewed
Ameris' home
purchase
lending in the
Tallahassee
MSA in 2016:
Ameris denied
the
applications
of African
Americans 3.78
times more
frequently
than those of
whites. Ameris
made 147 such
loans to
whites and
only FIVE to
African
Americans.
Ameris is
systemically
disparate.
Also for the
record, and to
be addressed
at the
requested
evidentiary
hearings:
“Georgia bank
socking
customers with
overdraft
fees,” Atlanta
Journal
Constitution,
January 3,
2017: “Ameris
Bank collected
the most
overdraft/insufficient
fund fees per
account of any
U.S. bank,
says the
analysis,
which is based
on federal
government
data from the
first three
quarters of
2016. Ameris
collected an
average of
about $176 per
account.. The
No. 2 bank on
the list of
the top 10
collected an
average of
about $131 per
account. The
national
average was
$17.76.”
This is
predatory.
Ameris gobbled
up
Jacksonville
Bank and now
seeks Atlantic
Coast. Would
branched be
consolidated
or closed?
This must be
addressed,
including at
the requested
evidentiary
hearings. We
note that
Ameris is
already trying
to look beyond
this
challenged
proposal, to
try to acquire
Hamilton State
Bancshares,
Inc. and
Hamilton State
Bank. We also
hereby oppose
that; the two
proposal
should be
consolidated
and hearings
held on both.
On the current
record,
Ameris'
application
should be
denied."

Amid
the ongoing
scandal of the
Office of the
Comptroller of
the Currency covering
up
Sterling
Bank'sunreliable
Community
Reinvestment
Act data by
withholding
most of 400
pages released
to Inner City
Press under
the Freedom of
Information
the OCC is now
trying to
strong-arm
Inner City
Press into
scaling back
its request to
exclude
"internal OCC
communications."
On November 30
the OCC wrote
to Inner City
Press, "Since
the Federal
Reserve Board
has already
submitted its
final response
to you
regarding your
FOIA request
to them, would
you consider
modifying your
OCC request to
receiving: 1)
All
communications
between the
OCC and the
Bank minus the
Federal
Reserve Board
application
transmittal
documents; 2)
Bank CRA Data;
3) Public
Comments
received by
OCC on the
merger
application.
Please respond
to this email
if you concur
as soon as
practicable."
Inner City
Press replied,
"The problem
Inner City
Press has with
this proposed
limitation of
FOIA request
is we don't
know what we
are waiving -
what beyond
this that is
responsive to
our request
are you asking
us to waive
our request
to?" Now on
December 5,
this response:
"OCC internal
communications."
But this is a
purpose of
FOIA, to see
how government
actually
works, and for
who. On
December 27,
the OCC
provided Inner
City Press a
"final"
response with
virtually all
information
about the CRA
data redacted.
Inner City
Press has submitted
a FOIA appeal "of
the OCC's
December 27,
2017 (and any
other) Denials
of ICP's FOIA
Request
regarding the
application
Sterling to
acquire
Astoria and in
particular
Sterling's
unreliable CRA
data and the
[OCC's]
awareness of
this
unreliability."
This is
UNacceptable.
The
FDIC is primed
to take as its
leader the
lawyer of
Fifth Third
Bank, Jelena
McWilliams.
When Fair
Finance Watch
asked Fifth
Third for its
Home Mortgage
Disclosure Act
data, Fifth
Third insisted
on only giving
the data in
paper form,
unlike nearly
all other
banks which
gave it
electronically.
The effect was
to make it
impossible to
analyze
patterns in
the data, the
purpose of the
HMDA law.
Meanwhile the
Consumer
Financial
Protection
Bureau has
become a
battlefield.
In order to
run in Ohio,
Richard
Cordray
stepped down
at the head of
the CFPB,
naming as his
successor
Leandra
English. Hours
later, Trump
issued a
statement that
"he is
designating
Director of
the Office of
Management and
Budget (OMB)
Mick Mulvaney
as Acting
Director of
the Consumer
Financial
Protection
Bureau
(CFPB)." On
November 25
the White
House held a
background
press call, on
which
opposition to
the naming of
Mulvaney was
characterized
coming from
"blog-posts."
Still, the
Senior
Administration
Officials were
asked if they
plan to have
Leandra
English
removed from
the premises.
No, was the
answer: she
should show up
at the Deputy.
But have they
spoken with Ms
English? No,
was the
answer.
On Sunday
English filed
suit against
Mulvany "in
his capacity
as the person
claiming to be
the acting
director of
the CFPB." But
a preliminary
injunction has
been denied.
Watch this
site. After
non-response
by the OCC
even has it promises
merger
approvals to
banks with
Needs to
Improve CRA
ratings and
allows Bank of
Tokyo -
Mitsubishi to
skirt North
Korea
sanctions
review by fast
approving
applications
for which
effective
public notice
was never
provided (ICP
scoop on
notice here),Already,
the low percentage of banks
being given less than
satisfactory Community
Reinvestment Act rating has
become infinitesimal. Now the
Office of the Comptroller of
the Currency has signaled that
even those few low scores will
have no impact. In a "Policy
and Procedures Manual" quietly
issued on November 8, with no
notice or comment, the OCC
says "An overall less than
satisfactory CRA rating is not
a bar to approval of an
application. Rather, the facts
and
circumstances of the
application must be evaluated
as discussed in this PPM." (PPM
6300-2). All of this
under an "Acting" Comptroller
who has overstayed his term.
We'll have more on this- and
this: Sseven months after
Wells Fargo Bank's CRA rating
was dropped two levels to
"Needs to Improve," barring it
from acquisitions, the Office
of the Comptroller of the
Currency has quietly said, in
a footnote to a Bulletin
issued on October 12, that
"The OCC’s policy is not to
lower a bank’s CRA composite
or component rating by more
than one rating level." See here,
footnote 8. So when did this
become the OCC's policy, after
it dropped Wells by two
levels? Call it a stealth sop
to Wells Fargo - and seemingly
a violation of the
Administrative Procedures Act.
We'll have more on this. In
July it emerged that over
800,000 people who took car
loans from Wells were charged
for needless auto insurance,
pushing 274,000 Wells Fargo
customers into delinquency and
triggering nearly 25,000
wrongful vehicle
repossessions. So much for the
industry having cleaned itself
up after the predatory lending
meltdown. New York City
announced it will not enter
any new relationships with the
bank, also suspending Wells
Fargo's role as a senior
book-running manager for NYC
General Obligation and
Transactional Finance
Authority bond sales. A
statement by Mayor Bill de
Blasio and Controller Scott
Stringer noted that
"Currently, Wells Fargo holds
contracts with the City to
provide banking services,
including to operate 'Lock
Box' services that hold taxes
and fees collected by the
City. There is approximately
$227 million of City dollars
held in Wells Fargo accounts."
But will they get involved in
opposing Sterling National
Bank, which Inner City Press
and Fair Finance Watch have
exposed as having "unreliable"
CRA data, notwithstanding the
OCC's scam "Satisfactory"
rating on May 30? Click here.

***

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